Question
A U.S. company buys merchandise on credit (denominated in Euros) from a European company. For the U.S. company, which of the following statements is true?
A U.S. company buys merchandise on credit (denominated in Euros) from a European company. For the U.S. company, which of the following statements is true?
| If the euro appreciates, a foreign exchange gain will occur. | ||
| If the euro depreciates, a foreign exchange loss will occur. | ||
| No foreign exchange gain or loss will occur. | ||
| If the euro appreciates, a foreign exchange loss will occur. |
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Project Financing Financial Instruments And Risk Management
Authors: Frank J Fabozzi, Carmel De Nahlik
1st Edition
9811231494, 9789811231490
